Steel & tube has completed its second acquisition in a year, buying New Zealand fastener maker Manufacturing Suppliers for $32million in a mix of cash and scrip.
The $32million acquisition, $26million in cash and $6million in Steel & Tube (STU) shares, is conditional on normal due diligence.
STU expects the purchase to go ahead in about six weeks.
Shares in STU had slid from a late-February year-high of $3.11 to $2.64 this week, but gained almost 5% yesterday, trading around $2.77, following the acquisition announcement.
STU chief executive Dave Taylor said the acquisition meant customers would have access to a wider range of products.
The business would continue under the Manufacturing Suppliers name and retain the Fortress Fasteners brand.
''This is all about growing, innovating and competing in a rapidly changing market,'' Mr Taylor said.
In April last year, STU paid $27.5million for Tata Steel International Australasia, a division of giant global steel supplier Tata Steel, of India.
Tata Steel International supplies stainless steel, engineering steels and composite floor decks in New Zealand through eight outlets, and also to Pacific Island markets.
Steel & Tube
• In NZX top 50, market capitalisation $245million.
• 48 service and distribution locations around the country.
• Services: commercial and residential construction, manufacturing, rural and heavy and light engineering.
• Brands include Hurricane, Atlas and ComFlor.
Manufacturing Suppliers
• Established New Lynn, Auckland, 1980.
• Eight branches nationwide, more than 100 staff.
• Own fastener brand, Fortress, introduced 1997.
• Stocks more than 200 million items and 10,000 product lines.
• One of the country's largest fastening wholesalers.
- Source: S&T
